In mid-November, the Republican majority in the US House of Representatives has passed its version of the Tax Cuts and Jobs Act bill. Last Saturday, the Senate has followed suit and has cast a 51:49 approval vote on the parallel tax reform bill introduced by its Republican members. Admittedly, it is still not entirely clear whether the progress made so far will allow President Trump to sign his signature reform project into law before Christmas. The two versions of the bill still need to be reconciled, and an eventual compromise requires the approval of both chambers of Congress. However, prospects for success have now improved considerably, not the least because stakes are high for Republican members of Congress facing re-election in 2018. The rest of the world should therefore brace itself for massive implications that the reform will have for global trade and the international tax system.

Read the entire article: US Tax reform – Penalizing Intra-Firm Imports